Commentary on Judgment No. 17214 of 2023: Tax Crimes and Determination of Tax Evasion
Judgment No. 17214 of March 14, 2023, by the Court of Cassation offers an important reflection on tax crimes, particularly on the method of determining evaded tax. In this article, we will examine the key points of this decision, highlighting the criteria adopted by the judges and the implications for taxpayers and legal professionals.
Criteria for Determining Evaded Tax
The Court, in its decision, reiterates that to calculate the evaded tax, the judge must follow specific assessment criteria established by tax legislation. However, it is crucial to note that criminal assessment has limitations compared to administrative assessment, due to the different purpose that characterizes it.
Tax crimes - Determination of evaded tax - Criteria - Deduction of related costs - Possibility – Limits – Case law. In the context of tax crimes, the judge, to determine the amount of evaded tax, is required to conduct an assessment that, while it cannot disregard the criteria for determining taxable income established by tax legislation, is subject to the limitations arising from the different purpose of criminal assessment and the rules governing it. Therefore, where revenue not declared in mandatory tax returns is identified not based on presumptions, but on precise documentary evidence, such as income recorded in accounting records or bank accounts, corresponding costs can only be recognized if there are factual allegations from which the certainty or, in any case, the reasonable doubt of their existence can be inferred. (Case concerning the offense of failure to file tax returns, where the tax due was quantified based on revenue recorded in accounting and, in a minor part, on incoming bank transfers attributable to the company).
The Role of Documentation
A crucial aspect highlighted by the judgment concerns the importance of having solid documentation. The Court emphasizes that undeclared revenue must be supported by concrete documentary evidence, such as recorded income. Therefore, taxpayers must pay particular attention to the correct recording of transactions to avoid issues related to the assessment of their tax position.
- Accurate recording of income and expenses
- Retention of tax documentation
- Attention to tax return filing deadlines
Conclusions
Judgment No. 17214 of 2023 represents an important reference point in case law concerning tax crimes. It clarifies the need for rigorous and documented assessment, highlighting how the criteria for criminal assessment differ from administrative ones. For professionals in the field, it is essential to keep these guidelines in mind to correctly guide their clients and ensure tax management compliant with current regulations.
